Dear Sandra Slender,
I really appreciate that you have chosen our consultancy firm to prepare viability report on implementing integrated reporting division in your accountancy practice. I have enclosed the report and all the issues which have been raised are discussed in detail in this report. Following are the main verdict of the report:
• What is IR, elements of IR and its cost and benefits
• IR will have positive impact on your business and also it is very beneficial for your present and potential clients.
• IR will also improve the internal process and annual reporting of the business.
• The IR will require your company to hire new staff and trained existing staff.
Lastly, we would like to thank for the opportunity this report have given us and make us more recognizable with IR. If you have any further enquiries related to IR, please feel free to ask.
Yours sincerely
Accountant
Hafiz Mohsin farooq
ACCM4600
Accounting Theory and contemporary issues
Research Report on:
Implementation of New Integrated Reporting Division
By
HAFIZ MOHSIN FAROOQ
Student ID 107913
Submitted to
MAHESHA PEIRIS
September 11, 2014
KAPLAN BUSINESS SCHOOL
Contents
Executive summary: 4
1. INTRODUCTION 5
2. INTEGRATED REPORTING 5
2.1 ELEMENTS OF INTEGRATED REPORTING 6
2.1.1 Organizational overview and external environment 6
2.1.2 Governance 7
2.1.3 Business Model 7
2.1.4 Risk and Opportunities 7
2.1.5 Strategy and Resource Allocation 7
2.1.6 Performance 8
2.1.7 Outlook 8
The team also chose to calculate IRR as another method of evaluating the Super Project. Again
When choosing between projects with acceptable IRRs, the one with the highest IRR should be chosen.
Internal Rate of Return is a discount rate in which the net present value of an investment becomes zero. The investment should be accepted if the IRR is not less than the cost of capital. The IRR measures risk, by showing what the discounted rate would have to reach to lose all present value. Futronics Inc. investment would have an IRR of 14.79%. The investment should be accepted since it is greater than the 8% cost of capital. The 14.79% IRR shows the growth expected from the
Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the report.
As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the
IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,
Week four covered the concepts that pertain to writing reports for business, within it was the careful planning of the report and managing the information that has been obtained, concluding with how to effectively carry out the action of writing the report out. Within these concepts it was proved that significant emphasis should not just be placed on the way in which business reports the information, but also the purpose, content, and what the information is conveying to the audience it is prepared for. The importance that surrounds these reports is due to the fact that they are utilized as a tool to make business decisions, determine areas of opportunity, and solve problems that can arise (Newman, 2015). Given the various ways in which reports are utilized as one might imagine the information obtained, content, and audience might vary. Yet interestingly, just because certain business reports have to exist due to corporate standards might not necessarily mean that additional reports should not nor that better reporting practice should not be implemented. Unfortunately, a company that might have found this out a bit too late is Wells Fargo. The very well-known banking establishment found itself in
For this report, both group work for a presentation, as well as significant individual research went into finding the relevant content for a comprehensive report. Concluding this report it is evident that the new regulations do cover a wide range of ground, however there are many critics of these new regulations, who feel they will add cost and complexity, whilst possibly harming the quality of services accounting firms can overall offer to their clients.
The following report will be discussing the implementation of ‘Golden rules’ in the practitioner’s setting to help manage and support the behaviour of children aged three to five years old. The need for this implementation was discovered through a SWOT analysis the practitioner conducted keeping in focus the safety of the children. A Swot analysis is a tool used to identify an organisation or settings strengths, weaknesses, opportunities and threats (ODI, 2009). The strengths and weaknesses are related to internal factors whereas, opportunities and threats are the external factors (Development Impact and You, 2017).
IR is considered to “promote a more cohesive and efficient approach to corporate reporting and aims to improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital” (Consultation Draft of the Framework, 2013). As what Eccles and Krzus (2010, p. 3) advised, IR makes it possible to counter integration deficiency that most organisations have. They provide various separate documents, disclosing financial, social and environment responsibilities without linkage. On the other hand, by IR, the report would gain commitment to the environment, social recognition and a more efficient management system (Dragu and Tiron-
Financial reporting is extremely important in our everyday life. You have heard of the many
In addition, a number of new business practices had developed that were not contemplated at the time of the original paper. Finally, several surveys of our members highlighted serious deficiencies in the financial reporting framework, problems that hampered their ability to analyze companies and make wellinformed financial decisions. Consequently, those CFA Institute staff and volunteer members who have the responsibility of advocating for high-quality financial reporting thought that the time had arrived for the views in the white paper to be refreshed and extended to better reflect the changed circumstances. Once the work was underway, however, the project scope was expanded to consider both conceptual issues as well as revisions to financial statement display—that is, the business reporting model in its entirety. A special group of CFA Institute volunteer members was assembled—the Business Reporting Subcommittee—and tasked with developing the new paper. The Subcommittee comprised a subset of members from two existing standing CFA Institute committees: (1) the Global Financial Reporting Advocacy Committee (GFRAC), which was responsible for addressing proposals of the International Accounting Standards Board (IASB), and (2) the Financial Accounting Policy Committee (FAPC), which had similar responsibilities for proposals of the U.S. Financial Accounting Standards Board (FASB). The Subcommittee held extensive discussions over the next
“International Standards on Auditing (ISA’s) have basic rules & needful procedures together with related instructions in the form of guiding and other material. It is bound to developing, in the public interest, a single set of merit, global accounting standards that require clear & equivalent information in
Section 1 2 3 4 Introduction and Assessment Outcomes and Criteria Internal Controls and Fraud Finding weaknesses and making recommendations Report Plan Deadlines Report Guide Business English Other requirements
Integrated reporting enables organization to use new information to measure performance in all sectors and this enhances understanding on how value is created. Since communicating value creation is one of the key aspects of integrated reporting, organization can now understand how they create or destroy value. According to IIRC (2014), up to 92 per cent of businesses in the pilot project reported better understanding of value creation. Companies that use integrated reported can now understand how non-financial aspects affect financial performance and vice versa.